THE IMPACT OF PERFORMANCE MANAGEMENT ON THE PROFITABILITY OF MANUFACTURING FIRMS IN NIGERIA
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ABSTRACT
The study examined the impact of performance management on the profitability of manufacturing firms in Nigeria: A Case Study of Nestle Plc. The study sought to determine the impact of performance management components such as goal-oriented system, performance-based reward system, performance-oriented training system and performance appraisal on the profitability of Nestle Plc. The study employed the descriptive survey design. The data was generated through primary source. Questionnaire was administered to 167 randomly selected middle-level, senior and management staff of Nestle Plc. The analysis of data was carried out by the use of descriptive statistics and multiple regression analysis. The result revealed that the four components of performance managements have significant positive impact on the profitability of Nestle Plc. The study maintained that performance management enhances the profitability of Nestle Plc. To this end, the study suggested amongst others that relevant and key performance indices must be spelt out. It also has to be consistent with the job descriptions of staff, and must show how these indices contribute towards achieving the overall firm objectives.
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